Ford First Car Company to Join Climate Registry

In a move that surprised many, Ford became the first car company to join The Climate Registry (TCR), a nonprofit, national clearinghouse of climate output information. Designed to increase transparency in environmental reporting, TCR will aggregate mandated and self-reported data from companies across the continent, equipping consumers and policymakers with one of the most important political tools they can have: information.

Studies have revealed that data reporting requirements can motivate corporate changes.  Despite slumping sales, Ford appears to be enthusiastic about the reporting program. “We endorse TCR’s reporting process because it has adopted the WRI/WBCSD reporting structure, which will ultimately lead to a common, single reporting standard worldwide,” said Larry Merrit, manager of Ford’s global environmental policy. “A single reporting standard is easier for its members and administrators to manage and more cost effective than developing new tools on a state-by-state basis.” Impressively, Ford is also linking its reporting to the Chicago Climate Exchange, increasing accountability.

A single standard really would be helpful. The absence of a single standard is a challenge for clean tech investors and private sector players. The lack of federal leadership and regulation creates so much uncertainty in the market that it discourages investment for project funding. For example, green building has existed for decades, under the radar. The industry took off once LEED standards were put in place, validating the market in the mainstream. Having central standards allows policy makers to build out tax policy, environmental laws and market controls.

Though there do not yet appear to be tools to verify self reported data, if companies go through the trouble of paying for someone to calculate their green house gas output twice a year, the hope is that they are likely to report them truthfully. The Climate Registry reflects an effort to let companies self regulate and meet policy goals on their own rather than responding to government mandates. Though unified standards and regulatory structures are important for investment, companies argue that they have the best expertise and industry knowledge to meet government goals.

Admittedly, the author can get a bit cynical about American car companies’ slow and almost collusive response to global warming. However Ford’s move is revolutionary for the company, demonstrating cooperation and good faith, and is a beautiful thing to see.

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